May 23rd, 2019

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Becken Launches Mezzanine Debt Fund for Institutional Investors and Family Offices
  • Fund invests in project developments of Becken
  • Vehicle to be launched under Luxembourg law
  • First sub-fund placed
  • Target performance of over 12 percent IRR announced

Hamburg, May 23, 2019: The nationwide project developer Becken launches a mezzanine debt fund for institutional investors and family offices via its investment company BECKEN Invest GmbH. The "REPE Funds" is organised under Luxembourg law and invests in office and residential project developments by Becken in the metropolises of Hamburg, Berlin, Munich, Düsseldorf and the metropolitan region of Frankfurt am Main. The investments are made in the form of preferred equity. The first sub-fund will initially co-finance a project volume of around 300 million euros in three project developments.

The target total return for fund investors is more than 12.0 percent IRR p.a. HANSAINVEST LUX S.A. acts as the service KVG. hsp Investment Advisory is responsible for the interfaces between the basins and HANSAINVEST as well as providing individual advice to investors. The consulting company was founded specifically for this purpose outside the Becken Group and was geared to Luxembourg requirements.

Prof. Dr. Michael Becken, Managing Director of BECKEN Invest and hsp Investment Advisory GmbH, explains: "With the 'REPE Funds' we enable institutional investors to participate in the added value of real estate projects from Becken. Many institutional investors are looking for comparable admixtures for their portfolios. With the new fund, we will be able to meet these needs within a regulated structure."

Dieter Becken, Managing Partner of Becken Holding GmbH, explains the advantages of the fund vehicle. "The new Luxembourg fund enables us to let preferred equity flow into our projects. Together with our equity capital, we can thus handle an even larger project volume and successively expand our project development business in Germany".

In total, three to five projects with a volume of between 300 and 500 million euros are to be co-financed each year through this fund structure. In addition to the project developments of the first sub-fund, one office development each in Hamburg and Wiesbaden and one residential development in Hamburg, further developments with a volume of almost EUR 500 million are available.